The applications of the IDRT pair on Liquid is beyond trading

There are many exciting uses for Liquid’s direct IDRT pair that go beyond mere spot trading.

 

Arbitrage Opportunities

“Arbitrage” is one of those jargon words you’ll often hear traders throw around. Put simply, arbitrage is the practice of profiting from the price difference between two or more markets. It can be applied to any kind of asset such as stocks, derivatives, and most certainly in crypto too! 

There are many crypto exchanges in the world and in each of these exchanges, the price of one cryptocurrency (e.g. BTC) can vary. We often notice that there are times when BTC/IDR or BTC/IDRT prices differ significantly from the local markets, which can be an opportunity to profit from arbitrage. 

Let’s explore the following example:

  1. Trader John notices that the Ask price of BTC/IDR pair on a local exchange is cheaper (ex: IDR 130 million per BTC) than the Bid price of BTC/IDRT pair on Liquid (ex: IDR 133 million per BTC).
  2. John purchases some BTC using his IDR in the local exchange which has the cheaper rate.
  3. John immediately transfers his BTC from the local exchange to his BTC wallet in Liquid.
  4. Once he receives the BTC in his Liquid wallet, he can immediately sell it against the IDRT pair (which offers a higher rate).
  5. Voilà! John has now earned more IDR from his initial capital (in the form of IDRT, 1:1 to IDR fiat) via this arbitrage process!

Do keep in mind, when you find such arbitrage opportunities from local exchanges, you must also take into consideration the BTC withdrawal fee, trading fee, and other fees that might be deducted by the local exchanges to your asset. By doing so, you can safely estimate the amount of profit that you might earn through such opportunities before actually executing the trade.

Cross-Border Transactions

Today, we live in a highly globalized world where many activities require cross-border transactions: export & import settlement, tuition fee payment for students living in different countries, and even salary payment as remote-work is now getting more popular. There’s one problem: international transactions often incur notoriously high fees and can take an inconvenient amount of time until they are received by the recipient. 

Blockchain technology is expected to be a key disruptor in the $700 billion remittance business as it can help to overcome both the price and speed issues in the existing solutions. Blockchain technology offers several prominent features that could address the existing issues in the transaction process, such as its decentralized open ledger and peer-to-peer network. Further, the highly transparent nature of blockchain technology can address the low transparency issues often associated with remittance. 

Liquid, as a leading crypto platform that supports customers across the globe, could play an important role in the flow of such transactions. Users can now get better access to active markets for the crypto assets or fiat currencies they need. One of Liquid’s competitive edges is that it allows fiat deposit & withdrawal to various major world currencies such as JPY, USD, EUR, and others. There are at least two different approaches where users can swap and send their crypto assets or fiats to their peers in other countries: Spot Trading and Instant Exchange.

Spot Trading

IDRT is listed on Liquid’s spot markets-users can trade pair BTC/IDRT. Users can buy and sell their IDRT to BTC and vice versa securely, with relatively cheap fees on spot

The process looks like this:

  1. John, who is living in Indonesia, wants to send funds to his daughter, Jane, who is studying in Japan.
  2. John deposits  fiat Indonesian Rupiah (IDR) to IDRT using the applicable platforms* (such as https://www.rupiahtoken.com or Pintu mobile app (https://pintu.co.id). 
  3. John transfers the IDRT to Jane’s IDRT wallet on Liquid.
  4. Jane receives the IDRT and can immediately trade it to BTC from the spot trading pair feature on Liquid.
  5. Jane now has the BTC on her Liquid wallet which she can trade it against JPY.
  6. Jane immediately trades the BTC to JPY.
  7. Jane now has the JPY on her Liquid wallet.
  8. Finally, Jane can withdraw the JPY from her Liquid wallet to her bank account in Japan.

Liquid Swap

Soon, Liquid will be launching instant swap for IDRT on Liquid, which means users can trade their IDRT to any token or fiat currency supported by Liquid, without having to use the order book

The process will look like this:

  1. John, who is living in Indonesia, wants to send funds to his daughter, Jane, who is studying in Japan.
  2. John deposits fiat Indonesian Rupiah (IDR) to IDRT using the applicable platforms*, i.e. https://www.rupiahtoken.com or Pintu mobile app (https://pintu.co.id).
  3. John transfers the IDRT to Jane’s IDRT wallet on Liquid.
  4. Jane receives the IDRT and can immediately head to Liquid Swap (https://app.liquid.com/quick-exchange ).
  5. Jane chooses to exchange the IDRT she received from John directly to JPY. She will be able to check the rate first and then confirm the transaction.
  6. Jane now has the JPY in her Liquid wallet.
  7. To finish the process, Jane can withdraw the JPY from her Liquid wallet to her bank account in Japan.

*We will soon launch an instant deposit/withdrawal from fiat IDR to IDRT and vice versa directly on the Liquid platform, without requiring users to open two different platforms.

**The above processes also work in reverse, such as if Jane, who is in Japan, wants to send some funds to John in Indonesia. 

Rest assured, your assets are safe in Liquid as it has robust security measures and is fully regulated and licensed by the Japan Financial Services Agency. You can now access more options when it comes to transacting funds cross-border.

Why use IDRT?

Banking Integration

Currently, you can deposit & withdraw IDRT to fiat Indonesian Rupiah using both its website https://www.rupiahtoken.com or using its mobile app Pintu https://www.pintu.co.id. IDRT has a robust relationship with multiple leading banks in Indonesia i.e. Maybank, BNI, and BCA - including a “Virtual Account” facility that allows automated processing & transfer to the user's destination wallet address, enabling us to accept deposits and withdrawals in real time. 

If you opt to deposit through the IDRT website, you can receive the tokens instantly once you have deposited the fiat. On the other hand, if you withdraw IDRT to IDR using the website, you might need to wait a little longer as the transaction must go through the verification process. However, if you opt to use the Pintu app, all of the processes (both deposit and withdrawal) can be done automatically and in real-time - 24/7, 365 day a year. You will soon be able to deposit and withdraw IDRT through Indonesian leading e-wallet platforms via Pintu mobile app too! And worry not, we can transfer the fiat Indonesian Rupiah to ALL banks in Indonesia.

Market Making and Liquidity

The IDRT team has advanced in-house market making based on algorithms for cross-exchange and pure market-making. To ensure all IDRT markets are liquid and robust, we also partner with local and regional market makers to complement the in-house one. This feature has allowed IDRT to connect with top global exchanges and serve more Indonesian users.

Security

IDRT’s smart contract code has passed the CertiK audit, demonstrating credibility from a leading global smart contract auditor. On top of that, Rupiah Token is insured by Curv to give more protection to our users. IDRT also has advanced protection of private keys via Hardware Security Modules (HSM).

Competitive Fees

Rupiah Token does not charge you anything for depositing your fiat Indonesian Rupiah to our platform - it is 100% free. We only charge a small fee of 0.5% on your withdrawal amount + a Rp 4500 flat bank fee.

Vast Ecosystem

IDRT is continuously developing its ecosystem both locally and globally by partnering up with many relevant stakeholders. IDRT is supported by multiple crypto wallets such as Trust, Metamask, Argent, and so forth. It aims to strengthen both its crypto trading use cases as well as other real world use cases, such as its compatibility with the real-time financing platform called Sablier. 

Any further questions? We’re happy to answer them! Reach out to us anytime via the following channels:

Telegram (EN): https://t.me/rupiahtokeninternational 

Telegram (ID): https://t.me/rupiahtokenindonesia 

Twitter: https://twitter.com/RupiahTokenIDRT 

Instagram: https://www.instagram.com/rupiahtoken/ 

Website: https://rupiahtoken.com

All guest authors’ opinions are their own. Liquid does not endorse or adopt any such opinions, and we cannot guarantee any claims made in content written by guest authors.

This content is not financial advice and it is not a recommendation to buy or sell any cryptocurrency or engage in any trading or other activities. You must not rely on this content for any financial decisions. Acquiring, trading, and otherwise transacting with cryptocurrency involves significant risks. We strongly advise our readers to conduct their own independent research before engaging in any such activities.

Liquid does not guarantee or imply that any cryptocurrency or activity described in this content is available or legal in any specific reader’s location. It is the reader’s responsibility to know the applicable laws in his or her own country.

WRITTEN BY

IDRT

IDRT is the first stablecoin aiming to mimic the value of the Indonesian Rupiah. It is issued by Indonesian-based startup ‘PT Rupiah Token Indonesia’ and is the most-adopted stablecoin that is pegged 1:1 with Indonesian Rupiah (IDR).